Beach Energy announced its production was down 4 per cent during the second quarter of the 2024 financial year, citing planned downtime at its Kupe and Lang Lang gas plants.
Oil and gas company Beach Energy announced on Thursday that its overall production was down four per cent during the second quarter of the 2024 financial year, citing planned downtime at its Kupe and Lang Lang gas plants, located in New Zealand and Victoria respectively.
The company told the market it produced 4.3 million barrels of oil equivalent for the quarter, down from 4.5Mmboe million in Q1 FY24 and 4.8Mmboe in Q2 FY23.
Despite the fall in production, revenue jumped by 37 per cent from the previous quarter from $397 million to $544 million, on the back of Beach selling its inaugural LNG cargo and a one-off condensate shipment from its Waitsia gas plant, based in Western Australia's Mid West.
Higher average realised prices also aided Beach's operations, with oil climbing from $141 to $144 a barrel, while LPG added $2, reaching $821 a tonne.
Beach said despite the increase in sales revenue, it was largely offset due to a variety of cost-related factors.
Additionally, Beach has slightly reduced the top tier of its FY24 production guidance - now aiming for between 18Mmboe and 20Mmboe, after initially earmarking 21Mmboe.
Beach also revised its FY24 capital expenditure guidance, which rose $50 million to between $900 million and $1 billion.
Despite the quarterly results, interim chief executive officer Bruce Clement said the company was continuing to meet a number of key project indicators.
“These commercial outcomes are a further demonstration of Beach’s ability to deliver new gas volumes to the domestic market, and are key milestones toward our expected step up in production rates and cash flow to come this calendar year and beyond," he said.
Beach last traded at $1.58 per share, up 3 per cent, as of 1.29pm AEDT.
